KONE Oyj announced earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, on consolidated basis, the company's sales were EUR 2,656.9 million compared with EUR 2,593.2 million a year ago. Operating income was EUR 365.7 million compared with EUR 392.2 million a year ago. Adjusted EBIT was EUR 375.6 million compared with EUR 392.2 million a year ago. Income before taxes was EUR 374.8 million compared with EUR 389.3 million a year ago. Net income was EUR 281.8 million or EUR 0.55 per basic share compared with EUR 298.1 million or EUR 0.58 per basic share a year ago. Cash flow from operations (before financing items and taxes) was EUR 335 million compared with EUR 409.8 million a year ago. Return on equity was 34.2% compared with 38.1% a year ago.

For the year, on consolidated basis, the company's sales were EUR 8,942.4 million compared with EUR 8,784.3 million a year ago. Operating income was EUR 1,217.1 million compared with EUR 1,293.3 million a year ago. Adjusted EBIT was EUR 1,230.3 million compared with EUR 1,293.3 million a year ago. Income before taxes was EUR 1,275.2 million compared with EUR 1,330.3 million a year ago. Net income was EUR 975.1 million or EUR 1.89 per basic share compared with EUR 1,022.6 million or EUR 2.0 per basic share a year ago. Cash flow from operations (before financing items and taxes) was EUR 1,263.3 million compared with EUR 1,509.5 million a year ago. Return on equity was 34.2% compared with 38.1% a year ago. Interest-bearing net debt was EUR 1,690.2 million compared with EUR 1,687.6 million a year ago.

In 2018, KONE's sales is estimated to grow at around a similar rate as in 2017 at comparable exchange rates. The adjusted EBIT margin is expected to continue to decline in 2018 as witnessed in 2017. However, the margin pressure is expected to start to ease towards the end of 2018 as a result of pricing and productivity actions that have been taken. The outlook is based on KONE's maintenance base and order book as well as the market outlook. The main factors continuing to pressure the adjusted EBIT margin in 2018 are the decrease in the margin of orders received witnessed in 2017, in China in particular, and the increased raw material prices. The margin pressure is expected to start to ease towards the end of 2018 as a result of pricing actions taken and general productivity improvements as well as the first savings from the Accelerate program. New equipment business outside China and the service business are expected to continue to develop positively. Foreign exchange rates are estimated to have an approximately EUR 40 million negative impact on KONE's EBIT in 2018 assuming that translation exchange rates would remain at the end of December 2017 level.